Nelson's Company Manufactures Computer Games,and Nelson Is Interested in the Relationship

question 52

Multiple Choice

Nelson's company manufactures computer games,and Nelson is interested in the relationship between the price of a game and people's ratings of the game's quality.He surveys 1000 customers,selected at random,and finds the correlation between price and quality is +0.50.Based on this information,Nelson can conclude that

• A) people perceive the quality of a game to be better when the price is high than when the price is low.
• B) increasing the price of a game will increase the perceived quality of the game for approximately 50% of consumers.
• C) people perceive the quality of a game to be better when the price is low than when the price is high.
• D) decreasing the price of a game will increase the perceived quality of the game for approximately 50% of consumers.

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Definitions:

Voidable Contract

A contract that may appear legally valid but can be rejected by one of the parties without legal consequence due to certain defects.

Ratification

The act of formally approving an agreement or decision, making it officially valid, often after the fact.

Acquiescence

Silent or passive acceptance or agreement without protest.

Concealment

The act of hiding or withholding important information, particularly in legal or financial contexts.